NIFTY : 11101.65 +6.4 0.06% Nifty Bank : 21,509.95 +19.45 0.09%
Today’s market summarised
- Nifty again witnessed a gap-up opening today at 11,155 and hit a high of 11,224 after an hour. After facing resistance, the index fell sharply below yesterday’s close. After trading in a narrow range from 12 noon, bulls and bears compromised to close the index at 11101.65, up by 0.06%.
- Nifty Metal outperformed every other sectoral index, closing at 2,269.20, up 4.22%. The market was pulled up by the sector, with top performers of Nifty 50 coming from Nifty Steel.
- Nifty Bank closed marginally in green as uncertainities in the financial sector continued to scare away potential investors.
- All Asian Markets closed flat with slight gains or losses for the day, similar to Nifty. European markets are all trading in green at the time of market close.
- Hindalco and Tata Steel emerged as the top performing stocks in Nifty 50, pulling up the Nifty Metal index sharply. The jump can be attributed to strong resurgence in metal demand for the month of July. Steel consumption is used as an indicator for economic growth, and the higher volumes certainly display a positive outlook for the country.
- Shares of Axis Bank closed at Rs 434.20, up 1.18% after the launch of its qualified institutional placement (QIP) with a floor price of Rs 442.19. Shares had hit a day high of Rs 446.85. This was an easy opportunity for traders, as news of the QIP was shared in the morning Market Feed.
- Tata Consumer Products hit a fresh all-time high of Rs 471.80 after it reported 80% YoY increase in Q1 profits. Share prices slid to red during the day and closed at Rs 448, down 0.39%.
- Geojit Financial Services Ltd gained 4.87% to close at Rs 40.95 after it reported a 6-fold rise in quarterly profits YoY. The huge rise in profits come amidst reports of ever-increasing number of participants in the stock market amidst the pandemic.
- Godrej Consumer Products Ltd fell by 2.02% to close at Rs 678 as Q1 net profits decreased 3% YoY.
With the strong increase in metal volumes, hopes of fast economic recovery are increasing. As markets thrive on certainty, numbers like this will certainly thrill the bulls. Steel sales combined with the increasing auto sales volumes show that the economy is not ready to bow down to the pandemic yet. While a fall in GDP is expected for FY21, one can’t help but hope that the real numbers will outperform estimates.